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A Resolution approving a project for the benefit of Chatham University (the “Borrower”), an exempt organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, to be financed by the Allegheny County Higher Education Building Authority (the "Authority") by the issuance of the Authority's tax-exempt notes, in one or more series, in an aggregate principal amount not to exceed $11,000,000 (the "Notes"), provided that the taxing power of the County of Allegheny, Pennsylvania (the "County") shall not be obligated in any way with respect to the Notes, and declaring the financing of such project as desirable for the health, safety, and welfare of the people in the area where the facilities being financed are located.
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Whereas, the Authority, previously issued its Tax-Exempt Revenue Note, Series of 2014, in principal amount of $18,000,000 (the “Prior Note”), the proceeds of which were loaned to the University to assist it in financing costs of the construction of a residence hall and a commons building at the University's Eden Hall Farms Campus in Gibsonia, Pennsylvania, and payment of all or a portion of the costs of issuing the Prior Note; and
Whereas, the University has requested the Authority to assist in the financing of (i) refunding the outstanding Prior Note or, in lieu thereof, paying off any interim loan from Dollar Bank, Federal Savings Bank (the “Bank”) to the University advanced for the purpose of paying off the Prior Note on its maturity date, and (ii) all or a portion of the costs of issuing the Obligations (hereafter defined) (collectively, the “Project”); and
Whereas, the Authority was created by the County under the Municipality Authorities Act, as amended (the "Act"), and is authorized under the Act to issue its bonds, notes or other obligations to support eligible educational institutions, and the Authority has determined that the public interest will be served and that the purposes of the Act can be furthered by the Authority's issuance of obligations in order to provide funds to enable the Bank to make a loan to the Borrower for the foregoing purposes; and
Whereas, Section 5607(b)(2)(iv) of the Act provides that the Authority may provide financing for school building and facilities to be leased to or financed with loans to private, nonprofit universities such as the Borrower, if the municipality organizing the Authority declares by resolution or ordinance that it is desirable for the health, safety, and welfare of the people in the area served by such facilities to have such facilities financed through a municipal authority; and
Whereas, the following resolution also is adopted to give effect to the provisions of the Municipality Authorities Act, Act No. 22 of 2001, as amended by Act No. 110 of 2001, 53 Pa.C.S. Section 5601 et seq., including without limitation Section 5607(a)(15) thereof; and
Whereas, neither the Notes nor the approval granted hereby shall obligate the taxing power of the County of Allegheny in any way, and shall be limited obligations of the Authority, payable solely from the revenues from the Borrower pledged for such payment.
The Council of the County of Allegheny hereby resolves as follows:
Section 1. Incorporation of the Preamble.
The provisions set forth in the preamble to this Resolution are incorporated by reference in their entirety herein.
Section 2. Terms Defined.
Terms used in the Recitals to these Resolutions are herein used as therein defined.
Section 3. Declaration Regarding Financing of the Projects.
For the purposes set forth in the Recitals, and subject to the limitations set forth in the last Recital stated above, the County of Allegheny, Pennsylvania, acting by and through its County Council, hereby declares that it is desirable for the health, safety and welfare of the people of the area served by the Project to have the Project financed through the Authority pursuant to the issuance of the Notes. The Project is hereby approved, and such approval shall not in any way obligate the taxing power of the County.
Section 4. Severability.
If any provision of this Resolution shall be determined to be unlawful, invalid, void or unenforceable, then that provision shall be considered severable from the remaining provisions of this Resolution which shall be in full force and effect.
SECTION 5. Repealer.
Any Resolution or Ordinance or part thereof conflicting with the provisions of this Resolution is hereby repealed so far as the same affects this Resolution.
SECTION 6. Effective Date.
This Resolution shall enter into effect immediately upon its approval.